Yes — but it depends on what you mean by “write off.”
If you’re a U.S. citizen or resident alien, you can’t deduct the cost of buying foreign property from your taxes. However, you can claim certain deductions or credits related to it if the property is used for business, rental income, or investment:
- Rental Property Abroad – You can deduct expenses like mortgage interest, property taxes, repairs, insurance, and depreciation (just like with U.S. rental property).
- Foreign Property Taxes – You may be able to claim them as an itemized deduction or, in some cases, as a foreign tax credit.
- Business Use – If the property is used for business (like running a hotel or Airbnb), business-related expenses are deductible.
- Personal Use (Vacation Home) – If you use it for personal reasons, you generally cannot deduct expenses (except possibly mortgage interest or real estate taxes, if they qualify).
👉 Bottom line: You can’t just “write off” the cost of foreign property, but you can deduct expenses if it generates income or is used for business.
Here’s a simple breakdown:
| Type of Foreign Property | What You Can Deduct / Write Off | What You Cannot Deduct |
|---|---|---|
| Rental Property | Mortgage interest, property taxes, repairs, maintenance, insurance, depreciation, management fees, utilities (if paid by you) | Cost of the property itself, personal use expenses |
| Business Property (e.g., hotel, Airbnb business) | All business-related expenses: mortgage interest, property taxes, depreciation, advertising, travel for management, repairs, wages paid to staff | Personal/vacation use expenses |
| Personal / Vacation Home | Possibly mortgage interest and property taxes (if itemizing deductions) | Purchase price, depreciation, repairs, utilities, most other costs |
✅ Key tip: The IRS treats foreign rental/business property almost the same as U.S. property for deductions.
❌ But if you’re just using it as a vacation home, tax benefits are very limited.
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